Question

Boston Computers has the following transactions in August related to the sale of merchandise inventory.

​( transactions are at the end.) Journalize the sales transactions for Boston Computers assuming the company uses the perpetual inventory system. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry table. Assume the company records sales at the net​ amount.)

Aug. 12 Sold computers on account for $9,500 to a​ customer, terms 2/15, n/45. The cost of the computers is $5,700.

a) Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step.

Accounts and Explanation Debit Credit

b) Now journalize the expense related to the

Accounts and Explanation Debit Credit

c) Received payment from the customer on balance due

Accounts and Explanation Debit Credit

August 12	Sold computers on account for $9,500 to a​ customer, terms 2/15, n /45. The cost of the computers is $5,700.
26	Received payment from the customer on balance due.

Answer 1

Date	Accounts title	Debit	Credit
12-Aug	Accounts receivables	$             9,500.00
	Sales revenue		$            9,500.00
	(Computer sold on account)
12-Aug	Cost of Goods Sold	$             5,700.00
	Inventory		$            5,700.00
	(Cost of computer sold recorded)
26-Aug	Cash	$             9,310.00
	Sales Discounts [9500 x 2%]	$                 190.00
	Accounts receivables		$            9,500.00
	(Cash received within discount period of 15 days)